Under a Fixed Exchange-Rate System and High Capital Mobility,a Contraction

question 69

Multiple Choice

Under a fixed exchange-rate system and high capital mobility,a contraction in the domestic money supply leads to a:

• A) Trade-account deficit and a capital-account surplus
• B) Trade-account deficit and a capital-account deficit
• C) Trade-account surplus and a capital-account surplus
• D) Trade-account surplus and a capital-account deficit

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Definitions:

Phonograph

An early sound-reproducing machine that played records by tracing a stylus over a rotating cylinder or disc, invented by Thomas Edison in 1877.

Jazz

A music genre that originated in the African-American communities of New Orleans in the late 19th and early 20th centuries, characterized by syncopated rhythms and improvisation.

Technological Advance

The progress and innovation in technology, leading to the development of new devices, systems, or methods that improve efficiency, capability, and performance.

Appeal

A process by which a case is brought before a higher court for review of the decision of a lower court, aiming to overturn or modify the lower court's judgment.